Afghan Govt welcomes India's Budget Allocation for Kabul
&imwidth=600&imheight=450&format=webp&quality=medium "Afghan Govt welcomes India's Budget Allocation for Kabul")
Finance Minister Nirmala Sitharaman presenting Union Budget 2026-27 Photograph: (WION Web Desk)
Suhail Shaheen, Ambassador of the Islamic Emirate of Afghanistan to Qatar, welcomed the move. "I think the increase of budget allocation by India for Afghanistan indicates that both countries want to boost up their current level of relations and increase cooperation," he told WION.
India's increased aid allocation to Afghanistan in its latest Union Budget has been welcomed by the Islamic Emirate of Afghanistan govt, with a senior Afghan diplomat describing it as a sign of strengthening bilateral ties. New Delhi's decision to raise its development assistance to Afghanistan from Rs 100 crore to Rs 150 crore in the 2026-27 Union Budget signals a continued commitment to humanitarian and developmental support for the landlocked country.
The allocation, announced as part of the Ministry of External Affairs' funding, represents a Rs 50 crore increase over the previous year's figure. It comes against the backdrop of gradually improving engagement between India and the Islamic Emirate of Afghanistan since the Taliban returned to power in 2021.
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Suhail Shaheen, Ambassador of the Islamic Emirate of Afghanistan to Qatar, welcomed the move. "I think the increase of budget allocation by India for Afghanistan indicates that both countries want to boost up their current level of relations and increase cooperation," he told WION.
Shaheen highlighted the deep historical bonds between the two nations. "Afghanistan and India have remained traditional friends throughout history, in terms of both government-to-government and people-to-people relations," he added.
He also pointed to economic potential as Afghanistan rebuilds. "As we build Afghanistan almost from scratch, I think, there are a lot of opportunities in Afghanistan for Indian investment and trade in the country and in India which need to be explored and benefited from," Shaheen said.
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The increased funding is seen as paving the way for more Indian-backed projects in Afghanistan. India has maintained a focus on humanitarian assistance, including food aid, medicines, and infrastructure support for Afghanistan.
Ties have shown signs of thaw in recent months. Last year, India upgraded its technical mission in Kabul to full embassy status. In January, the Islamic Emirate appointed a diplomat in New Delhi, further normalising engagements.
For Afghanistan, still recovering from decades of conflict and facing severe economic challenges, the assistance is expected to support reconstruction efforts in areas such as infrastructure, education, and health, sectors where India has historically been active.
